Balboa Capital Hires Four Leasing Sales Veterans

Credit Analyst: Seeking an energetic and organized Credit Analyst. At least one to two years of experience as a Credit Analyst in financial services (banking, insurance, leasing, or mortgage) is required.

Funding Manager: Seeking a very organized, detail oriented Funding Manager. Minimum two years experience in brokering and discounting commercial equipment transactions is required.

Operations Manager: Seeking an experienced Operations Manager with knowledge of all sides of operations. Must have a minimum of five years related experience.

Send email or fax to Ryan Johnson, Corporate Recruiter.

Email

Fax: (888) 462-4305

Website:

We are ready to hear from you and field any leasing questions that you may have.

Five Point Capital

10525 Vista Sorrento Pkwy

San Diego, CA92121

Friday, July 23,2004

Headlines---

Classified Ads---Outsourcing---Collector

Funding Tree Kendra Bernal in Utah

NorVergence Telecom Legal Co-Op Continues to Grow

Customers Tells Us They Will Be Stopping Payment

Balboa Capital Hires Four Leasing Sales Veterans

Classified Ads—Help Wanted

Marlin Leasing Completes $304.6 Million Term Debt Securitization

Pacific Capital Reports Increase in 2nd Q Earnings Per Share

Greater Community Bancorp 2nd Q EPS of $0.24, up 20%

Synovus Reports 9.1% Increase in Net Income for 2nd Q

Hitachi Capital American Promotes Besgen to Prez & COO

"Fastest Growing Leasing Company" Adds Another To It’s Team

CIT Group Is “Hot”--No Haiku

Peek to be Prez & COO at CIT Group

News Briefs---

Sports Briefs---

"Gimme that Wine"

This Day in American History

Baseball Poem

######## surrounding the article denotes it is a “press release”

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Classified Ads---Outsourcing---Collector

Los Angeles, Ca.

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Near Boston, MA

My name is John Kenny. I have 14 years experience in leasing collections. I currently offer outsourced services to clients nationwide on a contractual, contingency basis. E-mail:

Louisville, KY.

We are a full service collection agency with attorney network. 21 years experience. Please call Jon Floyd, VP at 1-800-264-6850

email:

Saint Louis, Mo.

Complete commercial collection agency. Licensed bonded in all states and will out performed any other agency! Call 1-800-659- 7199 ext.315

E-mail:

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IRTC Contingencies: Commercial Collections- Skip Trace- Repossessions-judgment served- Investigations- Asset Re-marketing& No Cost Warehousing East Coast USA. Call 813-467- 4324 ask for Robert or E-mail to

all outsourcing ads available at:

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Funding Tree Kendra Bernal in Utah

Kendra Bernal is “alive and well,” evidently working for an

attorney in Utah, who specializes in finding missing heirs for

a finder’s fee of 50%.

Sent to Leasing News October, 2001:

“The Funding Tree, Inc., Riverside, CA has been accepting sub-prime deals on trucks and other equipment. They collect 15% prepaid residuals and doc fees up front. They cannot fund and getting refunds is next to impossible. I know of deals that are 3 plus months old. They also claim on their letterheads to be members of the NAELB (National Association of Equipment Leasing Brokers). They are not according to Maria at the NAELB .”

Some deals are as old as 7/01

Gary W. Psaledas

Western Equipment Financing, Inc.

83 Abajo Dr., Edgewood, NM87015

505-286-5437, Fax 505-286-543

Thirty-three years, Member NAELB

Funding Tree Response:

“We have 3 deals that are 120 days aged. 1 is a managed credit program, which means, this is normal. The vendor receives the payments and once the lessee makes 4 or more consecutive, on time payments the vendor is paid. The other two transactions are trucking transactions.”

Kendra Bernal

The Funding Tree, Inc.

6141 Riverside Ave., Suite 1

Riverside, CA 92506

Office Phone

Looking into this further, Leasing News reportedly found over thirty transactions not funded:

Dealers Not Funded

Midwest Truck Sales, Inc. John Saied 888-446-1127

R.E.B. Express Ellie Corbello 888-968-3563 X 113

Volvo of Utah Rebecca Hall 888-478-2276

Rush Finance Brent Hughes 800-973-7874

Coastal Finance(broker) Jim Coxe 800-887-0843

Volvo of Albuquerque Venita Coffee 505-843-7703

Inland KW-Phoenix Jerald Collens 800-258-7791

TEC Equipment Georgia Field 800-497-7667

Idaho FL Frank Flemming 800-658-5084

Danforth Capital (broker) Dan Chagnon 800-910-2225

Whited Trucks Mark Walsh 800-786-4736

IMCO Trailers Paul Yberra 888-496-4626

Prudential Leasing (broker) William Ross 972-392-3008

AMEX Equipment Dick Steensland 623-872-3468

PremierTruckCenter Chris Mehaffie 800-671-6882

Atlas Trucks Gordon Chou 877-860-6757

S.E. Truck Sales Peter O'Donnell 877-295-3748

M&K Quality Truck Sales, Inc. Ron Meyering 800-510-8727

I-10 International Trucks Gayle Austin 877-954-9241 returned

half of $26,000 up front money

Tulsa Freightliner Dan Clark 800-725-5312

According to the Department of Corporation, there are another two dozen deals from dealers on one street that were not funded, money not returned, and they have an on going investigation and hearing to be held on the allegations.

At this time, Gary Psaledas of Western Equipment Financing goes on line via listserve of the National Association of Equipment Leasing Brokers to warn other members about the Funding Tree and the experience he is having. Other brokers have similar problems with the Funding Tree.

He then contacts the California Department of Corporations.

“I received a phone call from John Noonan, CA Dept. of Corps., Investigations division, 916-322-6067. He asked a lot of questions regarding the Tree. He also told me that Bernal had 9 Felony counts in 97 of which she pled to two. I will be talking with him again today. This may be a good source for you to send the ex-employees and the other brokers.”

Leasing News confirms this information with the Department of Corporations and the District Attorney, who confirmed what we were told. One of the requirements was “ Mrs. Bernal not to handle money of others.” The Funding Tree nor Kendra Bernal is not a licensed in the State of California, although she originally told Leasing News the company was licensed.

Ex-employees, including the ex-sales manager tell us about high lease factors, advance rentals and 15% deposit collected on many hard credit “owner-operator” leases, but commissions not paid, and they suspect the leases were not funded. They state the Funding Tree was also collecting monthly rentals from lessees, although the vendors had not been paid. Reportedly “commission only” sales people come and go.

Kendra Bernal states this is a misunderstanding and she will have a statement soon.

In the meantime, the Funding Tree and Integrity Group merges. She tells us they have money and will be funding leases, as part of the agreement to merge, plus they are seeking new “investor money.” Please wait, she asks, as this will all be straightened out.

--

And was she good at spinning a story. Even her attorney is out

$15,000, as she never paid him for representing her. Accordingly

he asked to be dismissed from the case, but the judge said, “no.”

Her court records show that she is out on $184,000 bail.

Her attorney of record is owed $15,000 for legal fees, he

says, but he can’t collect because he says she’s skipped.

Leasing News did give him her new telephone number.

“I called Kendra, and that is indeed her. I am probablyethically precluded from divulging the substance of our discussion, as she was once a client, much to my chagrin. However, I thought you would want to know that your source has in fact found the real Kendra Bernal.”

Case RIF75158 Defendant 75187 BERNAL, KENDRA

Case RIF103811 Defendant 75187 BERNAL, KENDRA AMELIA

Case 9642653 Defendant 75187 BERNAL, KENDRA AMELIA

Case 9642653 Defendant 75187 BERNAL, KENDRA AMELIA

Case 9642653 - Defendants

Case 9642653 Defendant 75187 BERNAL, KENDRA - Status

Case 9642653 Defendant 75187 BERNAL, KENDRA - Charges

Case 9642653 Defendant 75187 BERNAL, KENDRA - Probation
Probation Has Not Been Granted On This Case For This Defendant.
Case 9642653 Defendant 75187 BERNAL, KENDRA - Related Cases On Calendar

Case 9642653 Defendant 75187 BERNAL, KENDRA - All Defendant's Cases

Case 9642653 Defendant 75187 BERNAL, KENDRA - Actions and Minutes

Case 9642653 Defendant 75187 BERNAL, KENDRA - Fine Information

Small Claims Court Action:

Name Search Results

Leasing News reported readers having trouble with the Funding Tree and workedwith the late Rene Tankersley of Landline Magazine, the official publication of the “Owner-Operator Independent Drivers Association” with an audited 216,000 subscription list.

Here is the June 17,2002 story written by the late Rene Tankersley of Landline Magazine:

Finance company operator arrested

The president of an advance-fee finance company has been arrested on seven felony counts. Kendra Bernal, of The Funding Tree (not to be confused with The Lending Tree) and Integrity Group, was arrested May 31 in Riverside County, CA. Under the two company names, Bernal offered financing of commercial vehicles and other equipment.

Bernal faces six felony counts of taking money and personal property of a value exceeding $400 and one count of engaging in the business of a finance lender and broker without obtaining a license from the Department of Corporations.

The complaint alleges Bernal operated without a license from September 2001 through May 30, 2002, and "took, damaged and destroyed property of a value exceeding $150,000." The complaint listed money and property taken from Freedom International, Luis Ojeda, Joe Diaz, Fernando Hernandez, Diversified Sales and Service Corp., and Jose Martinez.

Finally, the complaint noted a violation of probation had been filed based on these allegations. Bernal was serving a 60-month probation, which prohibited her from receiving or accepting any type of money on behalf of her employer, and from purchasing, selling, registering, transferring, leasing or renting a vehicle without prior permission of the probation officer.

The latest charges came five months after the California Department of Corporations issued a desist and refrain order in January. The order warned Bernal and her companies to stop engaging in business as finance lenders or brokers without a license in violation of the California Finance Lenders Law. The same month, Land Line became aware of Bernal, after two OOIDA members read Land Line's report about advance fee finance companies and called in their complaints about Bernal.

OOIDA member Donny McCain paid The Funding Tree a $2,000 deposit Sept. 9, 2001, at the Great American Trucking Show in Dallas, for trailer financing. McCain never received the promised financing, but REB Express, the company where he was leased, put up the remaining $9,707 for the trailer.

OOIDA member Robert Kovalcin paid Integrity Group $8,795 in December 2001 for a down payment and fees for truck financing that never came through. After months of telephone calls and complaints, Kovalcin finally received $8,400 of his money back last month.

--

She called it “Easy Money” in many of her headlines, including this one whenthe company moved to Nevada:

Easy money? Funding Tree apparently takes root in Nevada

"The report of my death has been greatly exaggerated." Mark Twain said it in 1896, but it could be said today about The Funding Tree, a finance and leasing company.

Although the company's former president, Kendra Bernal, was arrested last year in California, the company appears to have resurfaced in Nevada under the name Legacy Leasing.

OOIDA member Larry Hargrove of Las Vegas, NV, says he paid $4,000 in advance payments and document fees to Legacy Leasing in November. As of today, Hargrove says he still has no truck and no sign of his $4,000.

Another trucker, Kenneth Farrington III, says he gave Legacy Leasing $3,200 on Dec. 18, 2002, with promises of a truck by the New Year. Farrington and his dealer, Bob Gordon, even showed up at Legacy's office in Laughlin, NV, in early February to get their money. They said they were told that they could be helped only by a man named Jack Thompson, and that he was out of the office.

Land Line first became aware of The Funding Tree in January 2002 after two OOIDA members read Land Line's report in December 2001 about advance-fee finance companies.

The two called in complaints about The Funding Tree, Integrity Group and Integrity Funding, which Land Line later learned were all names used by Bernal's business.

Kit Menkin, editor and publisher of Leasing News, an electronic daily newspaper for the equipment leasing industry, has written about The Funding Tree for some time. He said the company was the subject of a cease and refrain order issued by the California Department of Corporations in January 2002.

The order warned Bernal and her companies to stop engaging in the business of finance lending or brokering without a license, saying doing so would be a violation of the California Finance Lenders Law.

Bernal was arrested May 31 in Riverside County, CA, and charged with six felony counts related to the financing of commercial vehicles and other equipment, according to the Riverside District Attorney's Office.

Following Bernal's arrest, The Funding Tree's vice president, Bruce Peterik, took over as president.

Peterik is now listed as the contact for Legacy Leasing in the Laughlin Chamber of Commerce Membership Directory.

However, the Nevada Secretary of State's Office says its records show The Funding Tree registered at the same address in Laughlin as Legacy Leasing, with Peterik listed as the contact.

Farrington and his wife, Patricia, say a person identifying himself as Jack Thompson told them he was the owner of Legacy Leasing.

In addition, a message at the Funding Tree's former California phone number directs callers to an office in Laughlin, NV, and a woman at the Legacy Leasing office says the company was formerly called The Funding Tree. Peterik was not available for comment. A receptionist at the company said Jack Thompson was also unavailable.

Marcie Whitehead, who identifies herself as a former employee of Legacy Leasing, said the name Jack Thompson was an alias used by Peterik.

Neil Rombardo, deputy attorney general for Nevada, told Land Line the AG's office would investigate the company. The Attorney General's Fraud Unit Hotline can be reached at 1-800-266-8688.